Lord Moylan:

Moved by Lord Moylan

53: Clause 61, page 78, line 27, at end insert—“(1A) Subsection (1) does not apply to non-profit or resident-led entities which have the right to enforce payment of a service charge.(1B) Entities described in subsection (1A) include but are not limited to—(a) a Resident Management Company, being a body corporate which is party to a lease of a building where—(i) the members of that body are leaseholders, or(ii) the majority of the shares of that body are held by leaseholders;(b) a Right to Manage Company constituted under the Commonhold and Leasehold Reform Act 2002, and(c) a landlord wholly owned by the tenants whether through a corporate structure or otherwise.(1C) Subsection (1) does not apply to entities with repairing obligations to but no legal interest in a building.(1D) Entities described in subsection (1C) include but are not limited to—(a) managers appointed under Section 24 of the Landlord and Tenant Act 1987, and(b) named managers appointed under the lease as being the party with managing and repairing obligations in relation to the building but separate from the landlord and with no legal interest in the land or building.(1E) Where subsections 1A or 1C apply, section 20C of this Act continues to apply.”Member’s explanatory statementThis would allow non-profit and/or resident-run lease operators and other entities with repairing obligations but no legal interest in the building to continue to recoup legal costs through the service charge in the first instance. The proposed Section (1E) introduces a protection for tenants by reinstating Section 20C of the Landlord and Tenant Act 1985.